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Edited version of private advice
Authorisation Number: 1051805129112
Date of advice: 12 February 2021
Ruling
Subject: Income tax - small business concessions
Question 1
Will the Commissioner grant XYZ and extension of time until February 20XX to acquire replacements assets?
Answer
Yes. Having considered the relevant factors, and the particular circumstances of your case, the Commissioner has applied his discretion and will extend the asset replacement period to February 20XX. Further information can be found by searching 'QC 52291' on ato.gov.au
Question 2
Is XYZ Ltd an eligible entity for the purpose of applying the lower corporate tax rate of 27.5% for the 20XX-20XX and 20XX-20XX income years?
Answer
Yes. XYZ meets the requirements set out in section 23AA of the ITRA to be a base rate entity and consequently is eligible to be taxed at 27.5%.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
XYZ is a small business entity and has been operating since 20XX.
In 20XX you sold an active asset.
You plan to acquire another replacement asset but have experienced delays due to COVID-19.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-190
Income Tax Rates Act 1986 section 23
Income Tax Rates Act 1986 section 23AA
Income Tax Rates Act 1986 section 23AB